BE CAREFUL NOT TO GET CAUGHT IN THE RENTAL TRAP

BE CAREFUL NOT TO GET CAUGHT IN THE RENTAL TRAP

There are many benefits to homeownership. One of the top benefits is being able to protect yourself from rising rents by locking in your housing cost for the life of your mortgage.

Don’t Become Trapped

A recentarticlebyConsumerAffairsaddressed the continuous rise in rents, stating:

“The cost of putting a roof over your head continues to go up. Not only are home prices still rising, butthe cost of rent rose 0.5% in June.”

Additionally, in the Joint Center for Housing Studies at Harvard University’s 2017 State of the Nation’s Housing Report, it was revealed that,

“Despite a slight improvement from 2014, fully one-third of US households paid more than 30 percent of their incomes for housing in 2015.Renters continue to be more likely to face cost burdens…the number of cost-burdened renters (21 million) considerably outstrips the number of cost-burdened owners (18 million) even though nearly two-thirds of US households own their homes.”

These households struggle to save for a rainy day and pay other bills, including groceries and healthcare.

It’s Cheaper to Buy Than Rent

As we have previouslymentioned, the results of the latestRent vs. Buy ReportfromTruliashows thathomeownership remains cheaper than rentingwith a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States.

The updated numbers show that the range is an average of 3.5% less expensive in San Jose (CA), all the way up to 50.1% less expensive in Baton Rouge (LA), and33.1% nationwide!

Know Your Options

Perhaps you have already saved enough to buy your first home. A nationwidesurveyof about 24,000 renters found that80% of millennial renters plan to eventually buy a house, but 72% cite affordability as their primary obstacle. Aside from affordability,one in three millennial renters have concerns about their credit scores,and another53% said that a down payment is an obstacle.

Many first-time homebuyers who believe that they need a large down payment may be holding themselves backfrom their dream homes. As we have reported before, in many areas of the country, a first-time home buyer can save for a 3% down payment in less than two years. You may have already saved enough!

Bottom Line

Don’t get caught in the trap that so many renters are currently in. If you are ready and willing to buy a home, find out if you are able. Have a professional help you determine if you are eligible for a mortgage.

About Exit Realty Premier Elite

We are a full service real estate brokerage with over 100 agents to serve you. Let us be your real estate resource. Regardless whether you need to buy or sell now, or sometime in the future, let us help you. We are no pressure and will always try and help. Contact us at 561-792-3948 now.

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